Business News

Aust share market breaks losing streak

The Australian share market has broken a three-day losing streak as some buyers returned to the market despite negative overseas leads, however volumes were muted with no strong theme directing trading.

The benchmark S&P/ASX200 index finished the day up 26.7 points, or 0.47 per cent, at 5,682.1 points, after bottoming out on Thursday to levels not seen since February.

CMC Markets chief market strategist Michael McCarthy said the local bourse had been contrarian for much of the week.

"It's a bit surprising the Australian market performance today, particularly given the pressure that we've seen on the broader index over the course of this week," Mr McCarthy said.

"For most of this week we've shrugged off positive leads and we've under-performed the region, and that selling has not returned today - in fact, if anything, it appears to have turned to buying."

But Mr McCarthy said trading volumes were light, which did not inspire confidence.

"There doesn't appear to be a coherent investment theme," he said.

The Australian dollar remained below 80 US cents in the wake of lower iron ore prices, speculation of a looming US interest rate hike, and less hawkish comments from Reserve Bank of Australia governor Phillip Lowe on Thursday.

At 1630 AEST the Aussie was at 79.39 US cents, from 79.59 US cents on Thursday.

The refocus on potential rate hikes coincided with a turnaround for the big four banks.

ANZ lifted 0.6 per cent to $29.94, Westpac gained 1.2 per cent to $31.64, and National Australia Bank improved 0.9 per cent to $31.28.

Commonwealth Bank rose 0.7 per cent to $76.62.

Commonwealth Bank could launch a share buyback in the next financial year to redistribute capital raised by the sale of its life insurance and global asset management businesses, according to a report released by UBS analysts.

In the resources sector, Rio Tinto ascended 0.7 per cent to $65.97.

Rio Tinto announced it will return proceeds from the recent $US2.7 billion sale of its NSW coal operations to shareholders through a share buyback.